The portion of a corporation's profits that a firm pays out each period to its shareholders is a
A) dividend.
B) promissory note.
C) capital gain.
D) corporate bond.

Question

Quizplus · Accepted Answer

A dividend is the portion of a company's profits that is distributed to its shareholders as a form of payment. This payment is usually made in the form of cash or stock. Therefore, the correct choice is A) dividend.

The Portion of a Corporation's Profits That a Firm Pays